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Firm X having 100 shares outstanding considers acquiring Firm Y with 50 shares outstanding. The pre-merger prices of Firms X and Y are $55 and

Firm X having 100 shares outstanding considers acquiring Firm Y with 50 shares outstanding. The pre-merger prices of Firms X and Y are $55 and $24 per share, respectively. With the term of one share of X for two shares of Y, what is the equivalent cash cost in this merger?

_____

  1. $1,375
  2. $2,750
  3. $4,800
  4. $5,500

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